Godawari Power & Ispat Jumps 4% as Company Grants ₹40 Crore Loan to Deccan Gold Mines

Mumbai, September 1, 2025: Godawari Power and Ispat Ltd (NSE: GPIL, BSE: 532734) gained more than 4% in early morning trade, to reach ₹241.80, after the company reported of signing a facility agreement to grant Deccan Gold Mines Ltd (DGML) an extra inter-corporate loan of ₹40 crore.

Incorporated in 1999, Godawari Power & Ispat Ltd. has been a publicly listed company on the exchange since April 2006. It produces iron and steel products and is part of the NIFTY Smallcap 250 index. It has a total market capitalization of ₹16,179 crore and a free float market capitalization of ₹5,918 crore.

GPIL Share Price Surges 6.18% to ₹246.75 in Early Trade Amid Strong Buy Orders

At 10:45 IST, GPIL is currently trading at ₹246.75, up ₹14.37 (6.18%) from the last close of ₹232.38. The stock opened the trading day at ₹240.00, traded to a high of ₹249.20 and a low of ₹239.08 so far. The VWAP was ₹243.25. Buy orders totaled 46,20,467, and sell orders totaled 6,32,732. The numbers confirm demand and investor interest in buying, promoting the rally.

₹40 Crore Loan Agreement Raises GPIL’s Total Exposure to Deccan Gold Mines to ₹120 Crore

In the original disclosure on August 30, 2025, GPIL informed that the board had sanctioned a ₹40 crore loan to DGML out of its surplus funds, resulting in a total loan exposure of ₹120 crore. The loan was primarily to fund DGML’s subsidiary’s investment in the Altyn Tor Gold Project in Kyrgyzstan. Ninety percent of the loan will be allocated to the project, with the remaining 10% earmarked for the company’s general corporate purposes.

The loan has an original term of 36 months and a fixed annual interest rate of 12%, compounded monthly and payable quarterly. The loan is further secured by a pledge of 4,14,603 equity shares of Geomysore Services (India) Pvt Ltd, which is one of the promoter group companies of GPIL. Hira Infra-Tek Ltd, one of the companies owned by GPIL’s promoter group, holds 9.95% of DGML’s total shareholding and 10% of Avellum Partner LLC, Kyrgyzstan.

With GPIL’s shares rallying over 6% in intraday trade and its loan exposure to Deccan Gold Mines increasing to ₹120 crore, the development highlights the company’s strategy of deploying surplus funds into allied ventures. Backed by pledged securities and structured terms, the move reflects GPIL’s financial strength while drawing strong investor interest in today’s session.

REF: https://nsearchives.nseindia.com/corporate/GPIL_30082025182835_GPILNSEBSEDISCLOSUREUNDERREG30.pdf

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